Strong Pub Market Sees Sydney Hotel Sold for $26m

The Banksia Hotel, Rockdale in Sydney’s south has been sold by Monarch Hotels for approximately $26 million, at a reported yield of sub-8 per cent.

The purchaser was well-known hotelier Patrick Ryan who added the asset to his family’s extensive hotel portfolio.

It is speculated that, Monarch, which is backed by the US financiers, Varde Partners and York Capital, could look to cash in on the strength of the pub market and look at a sale of its entire portfolio, worth approximately $250 million.

It spent less than two weeks on the market and fetched a reported yield of under 8 per cent. The hotel is located within the burgeoning Wolli Creek to Rockdale growth corridor on a large 4,218 square metre island site on the Princes Highway, adjacent to the Banksia Train Station. The site has future development potential.

A number of hotel transactions have marked a buoyant market for pubs in Sydney in particular.

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